MRC Global Inc. reported a decline in financial performance for the third quarter of 2025, with revenues of $678 million, down 12% from $771 million in the same period last year. The decrease was attributed to operational challenges stemming from the implementation of a new enterprise resource planning (ERP) system, which affected order processing and customer shipments. The company's gross profit also fell to $125 million, representing 18.4% of sales, compared to $157 million and 20.4% in the prior year. The net loss from continuing operations was $9 million, a significant drop from the $29 million profit recorded in the third quarter of 2024.
For the nine months ending September 30, 2025, MRC Global's total sales reached $2.188 billion, a 7% decrease from $2.347 billion in the same period of 2024. The U.S. segment saw a 10% decline in sales, primarily due to lower activity in the Production and Transmission Infrastructure (PTI) and Downstream, Industrial, and Energy Transition (DIET) sectors, which were impacted by reduced commodity prices and project delays. In contrast, the Gas Utilities sector experienced a slight revenue increase of 2% year-over-year, reflecting ongoing infrastructure upgrades.
Strategically, MRC Global is in the process of merging with DNOW Inc., with the merger agreement approved by stockholders in September 2025. The merger is expected to close in the fourth quarter of 2025, pending customary closing conditions. The company incurred $6 million in legal and consulting costs related to the merger during the third quarter. Additionally, MRC Global completed the sale of its Canadian operations to EMCO Corporation in March 2025, which has been classified as discontinued operations in its financial statements.
Operationally, MRC Global reported a backlog of $571 million as of September 30, 2025, indicating potential future revenue. The company has also been focusing on geographic expansion, with new service centers established to penetrate markets such as mining and data centers. However, the implementation of the ERP system has temporarily disrupted operations, leading to increased inventory levels and a decrease in cash flow from operating activities, which was a net cash outflow of $61 million for the nine months ended September 30, 2025.
Looking ahead, MRC Global anticipates that the challenges from the ERP implementation will normalize, and the backlog is expected to convert into revenue in the coming quarters. The company remains cautiously optimistic about future growth, particularly in the Gas Utilities sector, driven by infrastructure modernization and new construction projects. However, ongoing geopolitical tensions and fluctuating commodity prices may continue to pose risks to its operational performance and market conditions.
About MRC GLOBAL INC.
MRC Global Inc. is a leading global distributor of pipe, valves, fittings, and infrastructure products for gas utilities, energy, and industrial markets. It offers extensive product and service solutions, technical expertise, and digital platforms to support mission-critical applications. Serving a diverse customer base worldwide, the company emphasizes supply chain efficiency, safety, and long-term relationships to maintain competitive advantage in the fragmented PVF industry.
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